Mumbai: Indian equity markets opened flat as gains in information technology and pharmaceutical shares were offset by weakness in financial services, FMCG and automobile stocks.
The Nifty opened at 22,599.05, down four points or 0.02%. The Sensex began at 72,668, gaining 29.30 points or 0.04%, reflecting a cautious start for stock markets.
IT and Pharma Lead Sectoral Gains
Nifty IT, Nifty MidSmall Healthcare and Nifty Pharma were among the sectoral gainers, advancing up to 0.59% in early trading. Metals, consumer durables and chemicals also edged higher.
However, Nifty Financial Services ex-Bank and Nifty FMCG declined up to 0.38%. Weakness across financial and auto shares limited the benchmarks’ ability to build momentum.
Market experts said the Reserve Bank of India’s calibrated monetary tightening could weigh on equity valuations. Higher interest rates make fixed-income investments more attractive, potentially affecting demand for stocks.
They also expect some investor preference to move towards sectors such as pharmaceuticals, where demand is relatively less sensitive to interest rates.
Foreign Selling Keeps Investors Cautious
Foreign institutional investors sold equities worth more than Rs 6,121 crore on Wednesday. Domestic institutional investors offered partial support, purchasing shares worth around Rs 4,596 crore.
Analysts said foreign selling in large-cap stocks, alongside US 10-year Treasury yields above 5.3%, could continue to pressure market heavyweights.
Growth stocks have retained investor interest despite expensive valuations, while value stocks remained subdued. Experts said a sustained market reversal would require foreign investors to resume buying.
Nifty Technical Levels in Focus
Repeated tests of the 22,574 level suggest the Nifty could undergo further consolidation before establishing a direction, analysts said.
They retained a weakened upside outlook towards 23,100–23,220, with 22,439 identified as a downside level to monitor.
Elevated crude oil prices and US bond yields continued to restrain sentiment. Asian markets traded cautiously following a softer Wall Street session, leaving investors watchful for domestic or global triggers.
